The U.S. dollar is set to see big gains under President Donald Trump, according to one macro strategist who says Trump's protectionist proposals will push the Dollar Index higher—much higher.
Trump is expected to push for tax cuts and more infrastructure spending, a policy mix that economists say is bullish for growth and could light a fire under the greenback.
According to Raoul Pal, founder of The Global Macro Investor financial publication, the stage is being set for a big dollar rally—even as Trump takes protectionist measures that may curb trade flows.
"Generally speaking, Trump policies are incredibly dollar bullish," Pal told CNBC's "Trading Nation" recently.
"Trade protectionist policies are bullish [for the dollar]; the dollar has been correcting for the first month or so of this year. So there's a reasonable chance, I think, that the dollar goes higher," he added.
The dollar will continue to appreciate this year, rising another 25 percent against a basket of major currencies, Pal predicted.